Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available at the end of the year: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 330,000 868,000 97,000 Retail $ 480,000 1,240,000 51,000 21,000 1,215,000 Estimate ending inventory and cost of goods sold (average cost).Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. CostRetailCost-to-RetailRatioBeginning inventoryPlus: Net purchasesFreight-inNet markupsLess: Net markdowns$ 400,000 $535,000905,0001,310,00045,0000058,000028,000Goods available for sale (excluding beg.950,0001,340,000Inventory)Goods available for sale (including beg. Inventory)1,350,0001,875,000Cost-to-retail percentage70.90%Less: Net salesEstimated ending inventory at retailEstimated ending inventory at costEstimated cost of goods sold01,250,000$625,000$ 1,350,000

Name: Kiddie World uses a periodic inventory system and the retail inventory
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Description: Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available at the end of the year: Beginning inventory Net purchases Freight-in Net markups Net m

The cost of goods sold refers to the direct costs incurred to produce the goods. The cost of goods…

Answered: Kiddie World uses a periodic inventory…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available at the end of the year: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 330,000 868,000 97,000 Retail $ 480,000 1,240,000 51,000 21,000 1,215,000 Estimate ending inventory and cost of goods sold (average cost).

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Cost
Retail
Cost-to-Retail
Ratio
Beginning inventory
Plus: Net purchases
Freight-in
Net markups
Less: Net markdowns
$ 400,000 $
535,000
905,000
1,310,000
45,000
0
0
58,000
0
28,000
Goods available for sale (excluding beg.
950,000
1,340,000
Inventory)
Goods available for sale (including beg. Inventory)
1,350,000
1,875,000
Cost-to-retail percentage
70.90%
Less: Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
0
1,250,000
$
625,000
$ 1,350,000

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